Japanese restaurant chain Daikiya pulls Hong Kong IPO as coronavirus outbreak hits deal making
- Daikiya said it decided not to proceed with the share offer because of the prevailing market conditions
- The company was planning to raise up to HK$200 million through the IPO by selling 100 million shares at HK$1.60 to HK$2.00 apiece
The coronavirus outbreak has claimed its first IPO victim in Hong Kong.
Daikiya Group Holdings, a Japanese-style restaurant chain, has halted its initial public offering plan on Hong Kong exchange originally scheduled for Friday.
The company has decided not to proceed with the share offer and its proposed listing on the main board at this time, citing several factors including the prevailing market conditions, according to an exchange filing on Wednesday. Investors who have applied to subscribe to its new shares will be refunded in full. It did not say if the IPO will be revived at a later date.
The company was planning to raise as much as HK$200 million (US$25.7 million) from the IPO by selling 100 million shares at HK$1.60 to HK$2.00 apiece, joining 22 companies that raised HK$8.5 billion in the January rush as social unrest eases off in the city since the start of the year.
“Many promotional events including press conferences and roadshows cannot be held, and companies may not be able to meet their IPO timeline because professional services firms like financial printers are not back to work,” said Kenny Tang Sing-hing, chief executive of China Hong Kong Capital Asset Management Co. The impact will only be short-term, he said, and companies are likely to restore their plans once the epidemic passes.